ISSN: 2224-0616 Int. J. Agril. Res. Innov. & Tech. 6 (2): 36-41, December, 2016 Available online at http://www.ijarit.webs.com

ASSESSMENT OF CATTLE MARKETING PRACTICES IN GURADAMOLE WOREDA, OF REGIONAL STATE,

Dejene Taye

Received 5 September 2016, Revised 10 December 2016, Accepted 27 December 2016, Published online 31 December 2016

Abstract

This study was conducted to assess cattle marketing practice in the crop-livestock production system areas of the highland, mid-altitude and pastoralists in the lowlands of Guradamole Woreda of Bale zone of Ethiopia. That is conducted from July 2015 to 2015 March. Cattle marketing practice were assessed based on market monitoring and questionnaire survey in each altitude. A total of 100 farmers were selected randomly from 10 peasant associations which are selected from each altitude based on proportion of peasant association in each altitude. Market monitoring was done at two livestock marketing places of Rayitu town and Jibri, which is capital city of Guradamole Woreda. Cattle marketing varied considerably across the peasant associations and marketing places. Cattle supplied to markets include calves, heifers, bulls and oxen, dry and lactating cows. Who often supply cattle to marketing places are farmers and pastoralists from Guradamole Woreda and neighboring ethnic societies. Livestock market infrastructure and management are among the key constraints to the development and sustainable management of livestock markets. Long trekking distances to markets are a significant impediment to pastoralists’ ability to profitably sell their cattle. During drought periods, animals lose weight on the journey to market, which significantly lowers their value. In some cases, animals are too weak to embark on the homeward journey, forcing producers to sell at very low prices. Poor and uneven access to market information remains a major constraint for market actors and producers in particular. Observations at market sites point to an imbalance in the bargaining power of traders and producers. Traders collude and jointly determine prices ahead of market day and producers have very little or no ability to negotiate prices.

Keywords: Cattle, Fluctuation, Information, Marketing and Season

Department of Environmental Science, School of Natural Science, Madda Walabu University, P. O Box 247; Bale ; Ethiopia

*Corresponding author’s email: [email protected] (Dejene Taye)

Introduction

Livestock serve a variety of livelihood, risk (CSA, 2008). In Ethiopia, the current per caput management and income-generating functions in consumption of milk and meat is 16 liters and the developing world. Where market access is 13.9 kg/year, respectively; being lower than the possible, livestock can act as a potential pathway African and the world per capita averages, which out of poverty for rural producers and other are 27 kg/year and 100 kg/year, respectively actors throughout the marketing chain, as such (FAO, 2009). access increases the potential scope for sales and A report by NEPAD CAADP (2005) indicated that makes livestock activities more remunerative generally, East African livestock trade is (Rich and Perry, 2009). Ethiopia holds the largest characterized by illicit (informal) trade between livestock population in Africa, estimated at about neighboring countries and the inflow stocks are 50.88 million heads of cattle, 25.98 million used either for domestic consumption (Kenya and sheep, and 21.96 million goats, 0.807 million Uganda) or for re-export and domestic camels, 42.05 million chicken, 2 million horses consumption (Somalia) or re-export alone 4.72 million asses, 0.37 million mules and 4.6 (Djibouti) (Umar and Baulch, 2007). Illicit trade million bee colonies (CSA, 2010). According to seriously affects Ethiopia. A large number of Solomon (2004), the livestock sector in Ethiopia livestock and livestock products valued at 917 plays a vital role in the overall development of the billion Birr annually are lost via the flow into the country’s economy especially cattle production neighboring countries. Data from livestock plays an important role in the economies and marketing authority (LMA, 2001), revealed that livelihoods of poor farmers and pastoralists. an estimated 325,800 cattle; 1,150,000 sheep and Cattle produce a total of 3.2 billion liters of milk goats, 300,000 skins and 150,000 hides go and 0.331 million tons of meat annually through illicit cross-border trade from Ethiopia.

36 Dejene (2016) Assessment of cattle marketing practices in Ethiopia

Yet, the existing income generating capacity of ecology weather condition. The capital of the livestock as compared to its immense potentials district (Jibri) is found at distance of 115 km and in the country is not encouraging. Enhancing the 545 km from zone capital, Robe and national ability of poor farmers to reach markets and capital, , respectively. The rural actively engaging them is one of the most population accounts 95% and all belong to Oromo pressing development challenges. Remoteness Ethnic group. The community major livelihood results in reduced farm gate prices, returns to (80%) relies on pure pastoral, and the remaining labor and capital and increased input costs. 20 % on agro- pastoral the livestock population of Sparsely populated rural areas, remoteness from the study area includes; 74,456 cattle, 35,075 towns and high transport costs are physical goats, 120115 sheep, 134 horse, 3,871 donkey, 243 barriers in accessing markets (Holloway and mules, 84,886 chicken and 8,800 bee colonies Ehui, 2002). For market development, dynamic (BOARD, 2008). relationship between demand and supply is a Study design prerequisite, but the smallholder livestock production is not market oriented. Thus, the Sampling procedures demand for animal products is expected to increase substantially with the projected growth Multi-stage sampling procedures (purposive and in human population, rapid urbanization and random) were employed to select the study sites, growth in per capita income. peasant associations (PAs) and households (HHs) of the “Woreda” for questionnaire survey. Three Market information is a vital to minimize altitude zones were selected purposively based on information gaps and uncertainties that exist in altitude. Peasant associations were selected based the agricultural sector to exchange commodity on proportion of peasant associations exist in between producer and traders. The lack of easy each altitude. HH was selected randomly from accessible and formal market information such as selected peasant associations based proportion of end market quality and quantity requirement, HHs in each PAs. Accordingly, two peasant prices and delivery timing needs might be associations were selected from highland, six available to limit market participant. However, in peasant associations were selected from mid- order to ensure greater market access, such an altitude zone of mixed crop-livestock production approach requires indigenous local systems area and two peasant associations were selected throughout the supply chain for those at the from lowland areas. From each selected peasant lower level particularly for the producer; lack of associations, 8-14 HHs were selected randomly the formal market information could result in based on proportionality. Thus, a total of 100 mistrust and weak relationship along the chain households were included in the survey. and might be contributing factor in decreasing the efficiency of transactions (ACDI/VOCA, Data collection 2006). Cattle production and marketing has consequently been included as one of the Both qualitative and quantitative data from both intervention areas in the current commodity- primary and secondary sources were collected. based specialization and commercialization plan. The techniques included were reviewing Therefore, the study was proposed with the secondary data, questionnaire survey and market general objective of assessing cattle marketing monitoring. practice in Guradamole Woreda. Questionnaire survey

The specific objectives are: Questionnaire was administered to a total of 100  To assess way of obtaining marketing household heads in three altitude zones. information Questionnaires having open-ended and closed-  To assess reasons for cattle price variation ended questions developed with main focus on cattle marketing practices. across marketing system

Market monitoring Materials and Methods Market monitoring were done at two livestock Study area market places of Rayitu town of communal The study was conducted in Guradamole district market for Guradamole, Goro, Meliyu and is one of twenty districts of Bale zone of Oromia Woreda and Jibri town market for Guradamole, National Region State. It is bounded by Goro Barbare Woreda of Bale zone of Oromia region. district to the north, district to the Issues presented in discussions include ways north east, district to the north-west, obtaining market information, marketing places, Guradamole and Goro Bakeksa districts of reasons for selling livestock, price determinants, Somalia Region to the south, Madda Walabu, seasons of cattle price variation and reasons for Mena and Arena Buluk districts to the west. Most cattle price variation across months/seasons in of the targeted kebeles have the low land and agro the study area.

Int. J. Agril. Res. Innov. & Tech. 6 (2): 36-41, December, 2016 37 Dejene (2016) Assessment of cattle marketing practices in Ethiopia

Statistical analysis Results and Discussion

The collected data were coded and entered into Socio-economic characteristics Microsoft Excel (2010) computer software program and analyzed using statistical package Cattle marketing practices of the study area were for social science (SPSS) Ver. 16 (SPSS, 2007). characterized based on different parameters. One Survey results were summarized using of the tools used was socio-economic aspects of descriptive statistics like mean, range, standard households. These include sex, and family size of error of mean and percentage values of various households (HHs), educational level and cattle parameters. To make comparisons among holding together with other marketing practices. different group’s chi square test and one way Household’s sex, family size and educational level ANOVA were employed. Differences were said were as shown in (Table 1). significant when P < 0.05. Table 1. Households sex, family size and educational level.

Parameter Altitude zones P Highland Mid altitude Low land Overall value Sex of HHs M 75 76.7 100 81 0.015 F 25 23.3 0 19 Maximum 13 16 17 17 Average family size Minimum 6 5 7 5 Mean ± SE 9.0±0.5 9.4±0.3 11.1±0.5 9.65±0.25 Illiterate 65 53.3 55 54 Level of education Basic education 20 15 15 16 (%) Elementary school 10 18.3 25 20 Junior secondary 5 8.3 5 7.0 school High school 0.0 5 0.0 3.0

In the highland, about 75% of the respondents farmers were purchased from the nearby were male farmers, while 25% were females. In markets, gifts from parents and relatives. There the mid-altitude 76.7% and 23.3% of the were two major local livestock markets in the respondents were males and females, Woreda as Rayitu town of communal market for respectively. Average family size in lowland and Guradamole, Goro, Meliyu and Jibri town market midland area were higher than that of highland. for Guradamole, Barbare Woreda of Oromia The educational level of HHs under investigation region. The primary markets in the Woreda were was found to be 54.0% illiterate, 16.0% basic fenced in which the respective municipalities education level, 20% elementary school, 7.0% charged tax on buyers upon exit from the market. junior secondary school and 3.0% high school in Some of the municipalities also charge sellers for descending order of magnitude (Table 1). unsold animals since they find it difficult to distinguish between sold and unsold animals Cattle marketing practice (Table 2). Cattle marketing place

According to the focus group discussion indicated that the source of initial breeding stock for Table 2. Livestock marketing places.

Market place Highland Mid-altitude Lowland Overall N=20(%) N=60(%) N=20(%) N=100 Jibri 0.0 25 0.0 15 Jibri and in villages 0.0 1.7 30 7.0 Rayitu 10 31.7 25 28 Rayitu and in villages 85 0.0 10 19 In villages 5.0 35 20 24 Farm gate 0.0 6.7 15 7.0 The most common day of the livestock marketing (usually capital towns of the Woreda) marketing were Saturday, Tuesday and Thursday. convened once a day in a week, although the Marketing days on Wednesdays and Fridays are largest gathering takes place in one or two days. not common. In some marketing places, Livestock were transported mainly by trekking. marketing convene twice a week, while in a few Similarly, 45% of respondents reported market

Int. J. Agril. Res. Innov. & Tech. 6 (2): 36-41, December, 2016 38 Dejene (2016) Assessment of cattle marketing practices in Ethiopia were an overriding constraint in both highland The survey result indicated that farmers market and midland areas due to poor road their cattle in near and long distance market area infrastructure in general was seen as a major and most of the HHs travelled for marketing in constraint to efficient trade and rate of the nearest distance of 1.29±.14 km and longest transport is the highest cost for livestock trading. market place 3.058±.28 km. The longest This finding is consisting with the report of travelers were pastoralists as for nearest Yakob Aklilu (2002) who stated that in Ethiopia 3.14±.508 km and 6.05±1.12 km for longest the supply of livestock to the primary, secondary market (Table 3). and terminal market is mostly done through trekking.

Table 3. Average distance travelled in k.ms for marketing.

Altitude zones Mean ± SE Nearest market Longest market Highland 0.94±.080 1.79±.097 Mid-altitude 0.78±.052 2.47±.11 Lowland 3.14±.508 6.05±1.12 Overall 1.29±.14 3.058±.28

Market information market visit. In addition, respondents indicated Survey result indicated that farmers depended on that most of them have advised on cattle actual market day information or on market marketing from extension workers and how to information obtained from relatives, friends or produce marketable livestock for marketing time. neighbors for prices and selling decisions. According to the survey result 25% in highland, Regarding sources of market information, most of 50% in mid-altitude and 55% in pastoral have the HHs preferred neighbors’ as 70% in highland, advised, while the other groups 75% in highland, 58.3% in mid-altitude and 65% in pastoral areas. 50% in mid- altitude and 45% in lowland areas About 23.4% in mid-altitude and 10% in lowlands have no advice on cattle marketing issue (Table prefer relatives. Those 30% in highland, 18.4% in 4). mid-altitude and 25% in lowlands prefer own

Table 4. Sources of market information and price determinants.

Market information Highland Mid-altitude Lowland Overall N=20(%) N=60(%) N=20(%) N=100 Relatives 0.0 23.4 10 16 Neighbors 70 58.3 65 62 Own market visit 30 18.4 25 22 Price determinant at market Seller 10 5.0 20 9.0 Broker 0.0 0.0 10 2.0 Negotiation b/n seller and buyer 90 95 70 89

Reasons for selling livestock traders estimate the age of the animals by checking their teeth and visual estimation. According to focus group discussion respondents indicated that livestock were sold to cover Price determinants household food gaps, clothing, school and The survey result indicated that 90% in highland, medical fees, social events, to buy other animals, 95% in mid-altitude and 70% in pastoral area, and to purchase crop inputs. In pastoral area, cattle price determined at the market places were since the area is drought prone, the main reasons through the negotiation between the for selling animals is to cover cash needs to buy sellers/producers and the buyers. About 10% in food grains and to cope up seasonal feed shortage highland, 15% in lowland, 5% in mid-altitude and disease problems. They also sold to replace areas indicated that they are the decision makers the old one with young stock. In mid and on selling of their cattle at the markets. Hence, highland altitude, filling food gap, loan 98% of the HHs stated that the brokers do not repayment and forced sales during dry period and have any influence when they sell their cattle crop planting seasons were mentioned as the (Table 4). Sellers trek back their animals, if prices most important reasons for selling. Farmers and perceived to be too low. In all market, payment is performed in cash on spot at the market place.

Int. J. Agril. Res. Innov. & Tech. 6 (2): 36-41, December, 2016 39 Dejene (2016) Assessment of cattle marketing practices in Ethiopia

Seasons of cattle price variation and winter season. Thus, the number of cattle in the market declines and prices increase, but 40% According to the survey result 83.3% HHs in mid- HHs in highland 90% in mid-altitude and 100% altitude and 100% in lowlands stated that cattle in lowlands stated that cattle prices decreased price increased during the crop harvesting during the winter seasons, and 55% of HHs in seasons, mostly in summer and spring. Also 75% highland stated that cattle price decreased in and 16.7% of HHs in highland and mid-altitude summer and winter season (Table 5). area stated that cattle price increased in spring

Table 5. Seasons of cattle price variation.

Season high Highland Mid-altitude Lowland Overall N=20(%) N=60(%) N=20(%) N=100 Summer and spring 0.0 83.3 100 70 Spring and winter 75 16.7 0.0 25 Autumn 25 0.0 0.0 5.0 Season low Summer 5.0 0.0 0.0 1.0 Summer and winter 55 0.0 0.0 11 Winter 40 90 100 82 Winter and autumn 0.0 10 0.0 6.0

Reasons for cattle price variation across months/seasons

The reasons for the cattle price variation as 6). About 43.3% of HHs indicated that seasonal stated by HHs, 80% in highland and 38.3% in fluctuation, shortage of grazing land and drought mid-altitude indicated that seasonal fluctuation affect cattle price in the study area. In such an was the major reason for cattle price variation as event, grass fails to grow; livestock are deprived long dry season followed by heavy rainfall. 100% of feed and lose their productivity, due to the HHs in lowland area indicated that seasonal typically uneven patterns of rainfall. In such fluctuation and severe drought were the reasons, cases, localized herders tackle this current which forces to sale cattle in cheap price. About situation by moving with their animals to an area 20% HHs in highland and 15% in mid-altitude where feed is relatively available. Also through indicated that shortage of grazing land during focus group discussion, the respondents stated crop planting season as most grazing land that market problems, such as trader’s covered with arable crop, which leads to shortage availability, lack of infrastructure and the socio- of grazing land and at the same time famine exist economic factors (fasting periods, holidays) and during plantation season as together leads to conflict also play a role in cattle price variation force the households to sale in cheap price (Table (Table 6).

Table 6. Reasons for price variation.

Reasons for price variation Highland Mid-altitude Lowland Overall N=20(%) N=60(%) N=20(%) N=100 Drought and seasonal fluctuation 0.0 3.3 100 22 Shortage of grazing land 20 15 0.0 13 Seasonal fluctuation 80 38.3 0.0 39 All above factors 0.0 43.3 0.0 26

The survey result indicated that 73.7% HHs in and feed supply. During Ethiopian New Year highland, 93.3% in mid-altitude and 70% in (September), Christmas and Ester holidays, both lowland of the producers believed that the trend demand and price of animals and their products for cattle price in their area is increasing and increases, but during short and long rain planting most of them are happy with existing price except seasons, drought and feed scarcity time the price harsh conditions exist in the area. About 26.3% in were decline. highland, 6.7 % in mid-altitude and 30% in lowland stated that they were not happy of Conclusions and Recommendations existing price especially in lowland area due to In this study, assessment of cattle marketing seasonal fluctuation and drought happened every practices were conducted in two livestock year. There is remarkable seasonal variation in production systems areas of mixed-crop livestock demand, supply and price of livestock and and livestock production system areas of lowland. livestock products depending on times of Cattle are the most important livestock species of holidays, crop planting and harvesting, drought households for their day to day activities such as

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